Barbara Strozzilaan 336
1083 HN Amsterdam
The Netherlands
gssbsecretariat@globalreporting.org

Item 04 – GRI Sector Standards
Project for Textiles and Apparel –Draft project proposal
For GSSB approval
Date

7 October 2021

Meeting

21 October 2021

Description

This document sets out the draft project proposal to develop a Sector Standard forthe textiles and apparel sector, for Global Sustainability Standards Board (GSSB)
discussion and approval to send to the GRI Board and Stakeholder Council forfeedback.
The proposed scope for the sector includes retailers, a decision that will need to
be ratified by stakeholder consultations.
After feedback from the GRI Board and Stakeholder Council has been received
and incorporated, the Standards Division will present the proposal to the GSSB for
final approval, in accordance with the Due Process Protocol.
Please note: the development and submission of this draft project proposal marks
the intention for the GRI Sector Standards Project for Textiles and Apparel to be
next to commence under the GRI Sector Program. The commencement date ofthis project has not been determined and is subject to the resource availability.

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an official
position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. The
GSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.

© GRI 2021

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Contents
Project background ................................................................................................................................. 3
Sector overview ....................................................................................................................................... 3
Sustainability impacts .............................................................................................................................. 4
Project objectives .................................................................................................................................... 5
Division of responsibilities ....................................................................................................................... 5Timeline ................................................................................................................................................... 6

2Project background3
4In February 2019, the Global Sustainability Standards Board (GSSB) approved the GRI Sector
Program to improve clarity and consistency in sustainability reporting.

5678The first pilot sector standard – GRI 11: Oil and Gas Sector 2021 – is finalized and has beenreleased; the Standards for coal, and agriculture, aquaculture, and fishing have completed their publiccomment periods and a fourth Sector Standard, for mining, is under development. A draft project
proposal for a Sector Standard for food is also being presented to the GSSB.

9101112

Textiles and apparel are the next sector in line to have a standard developed, according to the list ofsectors approved by the GSSB in November 2020. In this decision, consideration was given to thehigh sustainability impact of its activities to the synergies this sector will have with the Agriculture,
Aquaculture and Fishing Project.

13

Sector overview

14
15

It is proposed that the Sector Standard for textiles and apparel will apply to organizations whose
primary focus lies on:

16•

Textile production

17•

Apparel manufacturing

18•

Footwear manufacturing

19•

Apparel retail.

20
21
22

The textiles and apparel sector provides a basic societal need (clothing) and encompasses a broadvalue chain from the production of raw materials and fibres, to spinning, weaving or knitting, to dyeing
and finishing, cutting and sewing, logistics and distribution, to apparel retail sales.

23

The Standards Division recommends including retail into the scope of the sector.

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25
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28

The textiles and apparel sector is widely distributed across the globe, with major retailers in theclothing industry located in the United States, Europe and Australia, and major manufacturers locatedin developing countries such as India, China, Turkey, Pakistan, Indonesia, Bangladesh, etc.
Therefore, products are highly traded across countries. Many organizations are vertically integrated,but this is a highly competitive and fragmented sector.

293031

It is proposed that this project is titled ‘GRI Sector Standards Project fortextiles and apparel’.
However, the scope and name of this standard may deviate from this proposal following
recommendations from the Textiles and Apparel Working Group.

32
33
34
35

Table 1 lists the relevant classifications from external classification standards, specifically theInternational Standard Industrial Classification of All Economic Activities (ISIC), Industry Classification
Benchmark (ICB), Global Industry Classification System (GICS), and SICS Sustainable Industry
Classification System® (SICS®)1.

1 Sustainable Industry Classification System® or SICS® is the classification system of SASB.

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Table 1: Proposed sector key for the Textiles and apparel sector standard projectClassification
Standard
ISIC

Classification
No.
13

Classification Name

14

Manufacture of wearing apparel

15

Manufacture of leather and related products

4641

Wholesale of textiles, clothing and footwear

4751

55101020

Retail sale of textiles in specialized stores
Retail sale via stalls and markets of textiles, clothingand footwear
Washing and (dry-) cleaning of textile and furproducts
Textile Products

40204020

Clothing and Accessories

40204025

Footwear

40204030

Luxury Items

40401020

Apparel Retailers

252030

Textiles, Apparel & Luxury Goods

25504010

Apparel RetailCG.1

Apparel & Textiles

4782
9601
ICB

GICS
SICS®

Manufacture of textiles

37

Sustainability impacts

38
39
40
41
42
43
44

The key criterion for prioritizing sectors is their sustainability impacts. This takes into
account the significance of the sector’s impacts, considering their scale, scope, character andlikelihood. It also considers the size of the sector, the sector’s distribution around the world and thenumber of organizations from that sector that are in a position to use the GRI Standards.
A second criterion for prioritizing a sector is the potential to exploit learnings and synergies from other
Sector Standards that have been recently developed. Based on these criterion, textiles andapparel has been selected to be the Sector Standard to be developed next.

4546

Textile and apparel products are highly traded across borders, following a complex and multi-layered
value chain that may prevent stakeholders from identifying sustainability impacts of organizations.

474849505152

Apparel is a labor-intensive industry, and it is estimated that 75 million people are employed in clothes
manufacturing today; 80% of whom are young women between the ages of 18 and 242. Poor working
conditions and wages not meeting living standards are on the agenda among the concerns in thetextiles and apparel sector. According to the United States Department of Labor3, there’s evidence offorced and child labor in the fashion industry in Argentina, Bangladesh, Brazil, China, India,
Indonesia, Philippines, Turkey, Vietnam and more.

2 Elizabeth Reichart and Deborah Drew, ‘By the Numbers: The Economic, Social and Environmental Impacts of“Fast Fashion”’, 1 October 2019, https://www.wri.org/insights/numbers-economic-social-and-environmentalimpacts-fast-fashion
3 U.S. Department of Labor, ‘List of Goods Produced by Child Labor or Forced Labor’, 23 June 2021,

https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods

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58
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Production of textiles and apparel have notable environmental impacts, including water pollution andthe release of microplastics. Waste is also a critical issue for the industry, with more than 80% ofclothes and other textiles ending its life being incinerated of landfilled 4. These impacts are provided togive a first indication of the scope of issues covered by the proposed project. However, the issues
recommended for inclusion within a Sector Standards for the textiles and apparel sector will be
determined by a multi-stakeholder process in accordance with the Due Process Protocol and may
diverge from those contained within this project proposal.

60616263

These impacts are provided to give a first indication of the scope of issues covered by the proposed
project. However, the issues recommended for inclusion within a Sector Standard for textiles andapparel will be determined by a multi-stakeholder process in accordance with the Due Process
Protocol and may diverge from those contained within this project proposal.

64

Project objectives

65
66
67

The primary objective of this project is to develop a Sector Standard that improves the sustainability
reporting of textiles and apparel organizations, making reporting more complete and consistent acrossthe sector.

68

This Sector Standard will:

6970

•

Identify and describe the topics that are likely material for a reporting organization in thetextiles and apparel sector based on the sector’s most significant impacts.

71
72•Provide evidence and authoritative references for these topics to assist organizations toidentify if they are material for them.

73•

Identify and list appropriate disclosures for reporting on those topics.

74
75

As per the new GRI Universal Standards, organizations in the textiles and apparel sector that want toreport in accordance with GRI standards will be required to use this Sector Standard.

76

Recommendations may also be made by the Working Group regarding:

77•The scope, key, and name of the Sector Standard.

78•Considerations that may be relevant to Sector Standards for related sectors.

79•Revisions or updates to other GRI Standards.

8081

Impacts identified within this project for which no GRI Standard exists will be assessed and prioritizedby the GSSB for future GRI Standards development.

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Division of responsibilities

83
84
85
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A multi-stakeholder Working Group will be formed to contribute to identifying the most significant
impacts for the textiles and apparel sector and give recommendations on the development of theStandard. The Standards Division will draft the Standard, and the GSSB will have oversight and finalapproval over the Standard before its release.

4 European Parliament, ‘The Impact of Textile Production and Waste on the Environment’, 29 December 2020,

https://www.europarl.europa.eu/news/en/headlines/society/20201208STO93327/the-impact-of-textile-productionand-waste-on-the-environment-infographic

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91

The Standards Division will ensure coherence between the Sector Standard for textiles and appareland any Standards approved or under development.
The project will be conducted in accordance with the GSSB Due Process Protocol.

92

Timeline

9394
9596

The commencement date of this project has not been determined and is subject to resource
availability. Table 2, on the following page, outlines the anticipated project duration. Thecommencement date, along with the predicted dates of other key milestones will be confirmed onceknown.

Barbara Strozzilaan 336
1083 HN Amsterdam
The Netherlands
gssbsecretariat@globalreporting.org
Table 2: Estimated duration of Sector Standards Project for textiles and apparel5975 Project scheduling changes may occur over the course of the project, including extensions to the duration of project due to approval processes or other circumstances.

This document has been prepared by the GRI Standards Division and is made available to observers at meetings of the Global Sustainability Standards
Board (GSSB). It does not represent an official position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. The GSSB isthe independent standard setting body of GRI. For more information visit www.globalreporting.org.

© GRI 2021